Dubai Introduces New Tax Regulation for Foreign Banks
Dubai has unveiled a new tax measure targeting foreign banks within the Emirate.
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Sheikh Mohammed bin Rashid Al Maktoum, the Ruler of Dubai, Vice President, and Prime Minister of the UAE, endorsed Law No. (1) of 2024, focusing on the taxation of foreign banks. This regulation includes all foreign banks active in Dubai, including those within special development zones and free zones. However, it exempts foreign banks that have obtained a license to operate within the Dubai International Financial Centre (DIFC).
Tax Implementation Details
Under the new regulation, foreign banks are now subjected to a tax rate of 20% on their annual taxable earnings. However, if these institutions have already complied with the Federal Law No. (47) of 2022, regarding the Taxation of Corporations and Businesses, including its amendments, such corporate tax payments will be deducted from their total tax due.
The law elaborates on the criteria for determining taxable income and outlines the procedures for tax filings, payments, audits, voluntary disclosures, and the related duties and processes. It also protects the rights of foreign bank branches licensed by the Central Bank of the UAE and outlines the procedure for challenging tax audit findings through Dubai’s Department of Finance, adhering to the stipulated guidelines within the law.
Violations of this law will be met with sanctions and fines as determined by the Chairman of The Executive Council of Dubai, with fines not surpassing AED500,000 ($136,100). In cases of recurrent violations within a two-year span, fines may be doubled, reaching up to AED1m ($272,200). The implementation of this law commences from the tax year succeeding its enactment.
The Director-General of the Department of Finance is assigned the responsibility to make necessary decisions to facilitate the law’s application, to be officially published in the Official Gazette. This law reverses Regulation No. (2) of 1996 and any conflicting regulations, although existing decisions and memos under the 1996 regulation will stay effective until new ones are issued. Effective from its publication date in the Official Gazette, Law No. (1) of 2024 targets the taxation of foreign banks within Dubai.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Ensuring comprehensive health care and fostering innovation and job growth within the health sector.
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The Council of Health Insurance and the Saudi Insurance Authority began implementing this decision, requiring employers to provide insurance for domestic workers if their number exceeds four.
The general requirements for applying benefits and coverage under the policy include submitting a medical disclosure form, obtaining approval from the health insurance company, and insuring all workers.
This mandatory health insurance initiative is part of the Council of Health Insurance and the Insurance Authority‘s efforts to ensure comprehensive care, prevention, justice, transparency, and excellence in performance for all stakeholders.
The decision aims to achieve comprehensive health care, sustain health coverage, and encourage health insurance companies and healthcare providers to develop new products and create job opportunities in medical and non-medical specialties.
Iman Al-Tariqi, the official spokesperson of the Council of Health Insurance, explained that the domestic workers’ insurance policy covers primary care, public health, emergency cases, hospitalization without a deductible, emergency treatments for clinics with unlimited visits, vaccinations, and examinations.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
